Episode transcript
Parag Dixit
Hi Julius, hi, Modi, how are you?
Mudit
I'm doing very well. Parag,
Parag Dixit
how are you? I'm going very well. Welcome back. Welcome back to our state of investment series.
Mudit
Oh, absolutely. And
Parag Dixit
you had a short trip. How was your trip to India? Oh, it was nice. I'd gone there for work. There's lots of stuff happening out there, and I had a good time. Because when you, whenever you go to India, you know, it's a very different vibe. And the what we do, we have got different business there. That's an outsourcing business. So we have young crowd, young young kids, young 2020, ones. You know, it reminds you of your younger age. It reminds you of how energetic they are, what they're looking to do, yeah, what objectives they have, the way they think, the way they react, the way they do stuff. It's very different. And it's amazing to talk to people out there. Amazing to see hear their ideas, amazing to see how they look at things. Very different perspective. I
Mudit
loved it. The energy rubs off, right? And you come back more energetic. Vibe with a younger crowd, 100%
Parag Dixit
it takes a toll, because you're working Australia time, you're working India time, so it takes a toll. But I love it. And then we had a party on Friday. I think the whole about 150 200 guys there in a place and dancing and shouting on top of their voices. That's nothing beats
Mudit
it.
Parag Dixit
Yeah, no, it's lovely. It's it's good to the people. People have deserved it. They've been they've worked hard, and then you let yourself down and have just, just be with your colleagues and just have fun.
Mudit
Yeah, absolutely, absolutely
Parag Dixit
dancing and singing and then doing stuff. It was it was lovely. It was lovely. So, but, yeah, I think I'm looking forward to this year with, with what's going to happen in the Perth office, which is coming through, then the Adelaide office, which will come through in some point of time. And lots of stuff happening in terms of what we're looking to do in business. But that's, that's business and but globally, there's lots of stuff happening. So it's, I think, since covid i This is going on some every new year brings something tremendously new, which is shocking, which is not nice, and which is different to what everybody expects. And now we are having all of these inflation coming back and war and all that stuff, but yet, coming, coming, coming back to our state of investment series. Okay, so let's, let's. We'll be talking about South Australia and Adelaide today we I think Adelaide is at a good crossroads in 2026 cycle. It has the fastest days on the market of any capital as of right now. Amazing auction clearance rate, low listings, much below their average. The house price growth is very good. There's a solid orcas submarine program which is happening there. It has a good regional vibe that regions are doing well. They're poised to do well. They've been, they've been untalked about, you know, in this last year or so, but they're poised to do that. So we will talk at length about what we are going to do in Adelaide and regional South Australia in the same format, about purchase affordability, about Rental Affordability, is how it was in 2025 what's the outlook for 2026 about both of these things, and where does it stand in terms of the state of investment positioning for us as South Australia, And what can investors look to do, or owner occupiers look to do in the year 2026 but okay, let's, let's maybe start from where it stands in 2025 what all happened there, and how was that market especially? Let's start with Adelaide.
Julius
Adelaide was pretty good in 2000 from last 2023 till 2025 especially towards the northern part of the idlit had gone up too much, especially towards the it started with the titri Valley Council from tri that it had a ripple effect with the Salisbury council. So suburb within Salisbury Council touched around million dollar. All right. Meanwhile, there are a lot of suburbs which were neglected. Towards blayford Council two years ago. Probably they will be sitting around 400 ish. Now they all are sitting very close to mid, seven to high 700,000
Mudit
All right, okay.
Julius
Also, when you go towards 16 north of fairlay, towards the mono para or black view, Andrews farm, all the new construction with the units, townhouses and the four bedroom houses they were on mid five two years ago. Now they're touching around $800,000 Similarly, similarly, there is lot of impact towards the southern side of the Adelaide. So if you go little far till mount Barker, Virginia, until the Greater Adelaide, we could see the property prices touching Million Dollar.
Parag Dixit
Wow, wow, wow.
Mudit
You're right. The median house prices in Adelaide itself are touching somewhere between 950 K and a million dollars, which is, which is like, 80% growth over five years, phenomenal growth. Capital Growth has happened. Even unit prices have gone close to six. 56, 700, Mark. So it's not, not, I mean, and this has happened in a very short duration of time, just for five years. So the growth has been going well in Adelaide in terms of the property prices,
Parag Dixit
similar to what Brisbane did, right? Yes, similar, very close to it, and it's still done pretty good, and it still looks strong. I think every across the board, it Adelaide was late. Again, similar to, I think, Perth, Adelaide came into the party pretty late, but then it went pretty quick, very, very quick, and people were some people were caught unaware. Some people enjoyed the benefit. It was a good mix. Back across it
Julius
had a good run. It had a good run, especially when you look at now, the yields are not great. Some places around 4% on an average, the gross households around three and three, 3.3 to 3.5% units around four and a half percent. Yeah. Currently, if you look at the buying affordability or year to own houses in idle, it's around 56 years.
Parag Dixit
Okay,
Julius
they only up by 1.6 years from last one year.
Julius
But average growth across the when you look at the SA three or LG level performance, that's more than 10%
Parag Dixit
All right,
Julius
yeah, especially towards the affordable segments, yeah, we had seen the growth in between 15 to 20% all right. Auction clearance rate was extremely high, around 81%
Parag Dixit
Wow. So that's, that's a strong auction clearance rate. So basically, what it means this, you you list it, and it's gone,
Julius
yes,
Parag Dixit
right? So, and it's week on week, week on week. So that's a solid momentum. And I think this it is that's because of the demand, which is just been there in that state, across from owner occupiers or investors, that whatever comes from the market. People are just lapping it up. People just want it. They love it. And I think they've been the demand is still much more than the supply which is coming through there, and that's why the median prices, like you did, said madith, it's touching about I think a million dollars is more than close 200 suburbs, or maybe more than 190 suburbs have more than a million dollar median price out there in Adelaide, right?
Mudit
And what has happened is that because Adelaide had that advantage in terms of affordability over both Sydney, Melbourne and Brisbane, so that has been driving the demand. But what has happened is in in very quick span of time, the property values have gone up. Yeah, advantage which was there. Of course, it is still lower in value compared to, let's say, Sydney, but it is now almost touching any other big city, whether we talk about Brisbane or Perth or or Melbourne. Yeah. So,
Parag Dixit
yeah, it's been good because considering people, not too many investors jumped into the Adelaide bang wagon at the start, but then they started realizing that a lot of factors were coming in together and making it strong to do that and, and the reasons for demand were quite widespread. You know, it was a, just a very strong economical movement which happened out there, and then combine it with, I think aukus was a turning point. Was a good turning point whenever, when Adelaide bit came in, right,
Julius
the spending is very close to 90 billion over the cross of 30 years, and it is going to create close to 4000 plus direct jobs and 5500 additional indirect jobs which is going to be created. And there are a lot of when you look at the immigration numbers, when you look at the historical immigration number, Perth or Brisbane had fall in the immigration number as well. Adelaide is only state where the immigration number was constant when you look at the data for last 15 years, because whenever they were immigration policy changes happened, especially in Brisbane and Perth. When the market was not good or the economical conditions were not great, they applied those changes in retro versus Adelaide, never, entire State of South Australia never applied those changes in retro. So immigration policies are extremely strong historically.
Parag Dixit
Yeah. So that's why, when you look at the athlete growth, they didn't had any downturn in the property prices. It was slow before, but constant. It was right. So, yeah, that's, that's a strong better because, because of these, the clearance rates have been good because the demand has has been there. It is, it has been, it is. It has always been a supply constraint market. It never, there were no investments coming from builders or construction in this area. So it never happened. And people didn't think that they'll get much out of this. There was no plan which had, which was made that okay, we will do something, or we will have some action, because no planning was ever done. So when construction came to it, it there was so many constraint that it just didn't let anything grow. It. Just it kind of constrained people within it, and that's why the purchase inventory always remained critically low. Even in the year 2025 it was pretty low that there was nothing much moving the days of market. You were always saying the 23 days in the market still there. You know you what do you do?
Julius
And it is still there. It's like when you look at now in Adelaide, we hardly see any new construction projects.
Parag Dixit
Yeah, correct. So
Julius
if you visit Adelaide on ground as well, everything is too old. We. You look at the set quality is pretty old, so you still hold the good land sizes within in a CBD circle, but the houses are too old. Wherever you see a newer construction is towards the outer side of the CBD. Yes. So that's the main constraint. So that's why, when we see on ground, there is lot of demand from developers as well, because lot of people are there taking a bigger lots of divide and sale, and there's lot of owner occupied demand,
Parag Dixit
yeah,
Julius
for those newer houses, because whatever the stock available or quality of homes which are available on ground are very poor in condition sometimes, yeah,
Parag Dixit
absolutely right. And, and that's the condition is not great, but still, people are holding on to it. People who are owners are pretty much okay to hold on to properties. That's why there's listing. Volume is not there. Not much is happening in that area. And that's why you find that the because the supply is low, the most of the suburbs have a demand, which is out there, people want to have properties, but because they are not able to do much about that, it's kind of creating a ripple effect. You know, sometimes after suburbs are going into it, and they're having a good growth out there. That's why one of the most, I think, one of the brightest inventory position in across any of the capitals, in in this right, when this is, this is, this has created an impact that in Adelaide, you will find that the prices are moving up, and because newer construction is not coming, we are also finding that even the rentals are going up and but anyways, we'll come to rentals in a bit of a time. But because of this, the prices kept on rising. Kept on rising in Adelaide. And I think what happened is that gave birth to the story in regional South Australia, right there
Mudit
has been overflow from the demand from Adelaide, and that has resulted in regional also growing, going up in value. So but the good thing is, it is still much more affordable for first time people, for people who are looking to invest first time, the house prices, unit prices, both have gone up, but still much more affordable range. So 10% growth has been there. But for example, units you can get for somewhere between close to 400k less than that. So that's a much more affordable price. Good price range. Yeah. House is 505 50k That's the median price. So if you when you start comparing with a lot of other areas, and you look in that context better, better from a purely from, from that point of view,
Julius
yeah, especially when you look towards the outer Adelaide or towards the Outback, property prices were close to mid 200 so early three hundreds, around two years ago. Yeah. Now they're touching very close to a few cases towards the goal, we could see the property prices very close to $800,000 as well. But they're still around 33 essay tools where we can see the property prices sign between 350, to 550, yeah. And then entire 24 months growth is around 24 to 26% and the demand and supply is lot of cap it. So if you look at our scores, they are still more than 65 so that kind of demand, which we have in a regional part of the
Parag Dixit
and then, in fact, not only houses, even units, pretty well as well, right there. Yes, they've been strong, and though the median prices are lower, but the unit prices are still stronger. And it is. It's a good story, which is breaking out in regional South Australia. In fact, when we see and when we compare the other states as well, we've seen this story running in Queensland. We've seen this story running in WA, and we are seeing this story running in South Australia as well, that in the regional areas, units are still doing very well and are doing equally well. This is not the story in NSW. I mean, we'll talk of Victoria, we'll see. It's not the story in Victoria as well. But in these three states, South Australia is no exception. Has done extremely well. The it's a good house yield. It's about four, four and a half percent yields have come there. Units have got five, five and a half percent, five out percent rental yields. So it's a it's it. The income is obviously better than Adelaide in regional South Australia, much better than Adelaide. It's and it's a good one, you know, it's still not bad, and it's significantly more affordable than what people could do in Adelaide. And that was one of the reasons why there was a spillover from Adelaide to South Australia. It is, I think, even if it's a first time investor, and if he's sitting somewhere wherever, you know, sitting in Sydney, sitting in Brisbane, sitting in Perth, and you want to invest at a 500 odd k median price and getting a good four and a half five, four and a half odd percent rental yield, you know you're not bad. You know, you're pretty good. Or if you're buying an apartment and 400 kind of cost and getting a five and a half five, five and a half percent rental yield, you're pretty much good. And you're still getting a growth there as well. It's not that it's not growing. You're still getting a good growth. It's a good growth area. It is. It has the advantage over Adelaide, which is a continued advantage over Adelaide in south region, South Australia, which is what has made people look at investing in these areas, and look at come back to the regional South Australia and and do that, and then demand has come from lot of areas. It's been quite correct right across, right across South Australia,
Mudit
yes.
Julius
So when we look at the council wise limestone course towards the Loxton. And towards Outback, the property prices had gone significantly up, like I just said before, from last two years, more than 24% but the main reason for driver is agriculture, mining and energy projects, which is giving a sustainable employment growth. So when you look at the Barossa and the river land region, then main Employment Generation hubs are like, agriculture,
Parag Dixit
yeah,
Julius
similarly, rocks me down side of thing where we see the mining is a main driver for a job.
Julius
We have lot of energy projects, like hydrogen, wind, solar corridors over there. And then sa government is investing more towards those projects as well.
Parag Dixit
Absolutely, right. And tourism is done very well. You know, I can't talk about this again, so, you know, you look like I'm repeating wa one, but I've been to South Australia as well, and I've been in that whole belt. It's a phenomenal belt. Which is there, Kangaroo Island. Oh, beautiful. You need to go there the valley, the CARA Valley, all of these are phenomenal tourist areas where you need to drive in the outback. And you'll realize how beautiful they are. The peninsula is beautiful, you know what? Amazing. But anyway, every time he speaks about South Australia, you have to stop him, otherwise he will just carry it. What do you do? Pink Lake, and there are stuff, and let me not go on there. Okay, so that's that's beautiful. The tourism bit, which is happening in that whole belt in the south in South Australia, right up till the southern Western Australia. Huge belt of tourism. But South Australia has done extremely well out there. There is good there's a lot of fishing area which is happening there. That's why the coastal and the that corridor, that Fleury, you that Peninsula, that York Peninsula, all that is attracting people to live there. They're attracting lifestyle people to live there, attracting a lot of other people so they can come stay and work in these areas as well. And they can earn, you know, a lot of you know, we when you go there, you realize that people are wanting to have a good lifestyle, and they're able to earn, to afford that lifestyle, and they are happy in that, and that's what has got this market into and into a place where people would love to invest. And still, despite all of this, we find that not too many people want to sell, right? You still find that, obviously the vendors are saying that I'm fine with it, right? I can afford this. If a buyer can afford it. Why can't? As a seller, I afford it so I can afford it. I have no reasons to sell. I'm happy. And then that's what's causing the listing volumes to be a pretty thin we are seeing that the overflow in demand from Adelaide. It keeps on coming there, from Sydney, investors, Brisbane, investors, Perth investors, keeps on coming there. And it's it's pretty good. But
Mudit
I think what has also happened is the construction is still constrained because of the raw materials and trade shortages, because of which the volumes continue to remain low in terms of the new supply coming in, new stock coming in, so that overall inventory for somebody who's looking to purchase has been low. Structurally, it has been low because of the construction issues and because people are just looking to hold on, and not just
Julius
even the cost of construction is expensive, the availability of trades is bit concerned.
Parag Dixit
Yeah, correct. Availability
Julius
trains are concerned. Then you don't see a massive subdivisions happening there. So, yeah, there is a land, but there is no land, because subdivision cost is expensive. Getting a trades are expensive, time delays to build that. So that's why more number of more amount of stock is not coming up in the market versus demand is extremely high from net internal migration owner occupiers as well as investors. So there is
Parag Dixit
extreme pressure because a newer stock is not coming. So existing properties always face that pressure. And South Regional South still is no. It's not a it's no or not an outlier. It is still facing those same issues, same issues. The distance between towns is also large. So the construction is so sub, so divided, that new workers cannot go there. So the constraint keeps on coming so and that keeps on adding to the to the problem there. But, yeah, so that's the purchase wise. I think South Region, South Australia, has done pretty well. But let's, let's look at a rental lens. Okay, let's look at what's the Rental Affordability position. Let's start with Adelaide again. Okay, yeah. Adelaide is, it's always been a tight market, but I somehow, I by end of 25 I think rent rises were not growing as fast as what it was rented rental yields were not growing as fast as what it would in other capitals, right? And that's where it is. It's a different story. Now it's 26 will be a very different story, but 25 by the time it finished off, it was not. It was more of a stable story, rather than an aggressive,
Julius
stable story, but it's not growing aggressively as well. Like 21 to 24 we have seen there was a good renting affordability, so they were growing, but prices moved faster and the needles dropped. So at this stage, vacancies across Adelaide is around 1.28% which is extremely
Mudit
lower,
Julius
and days on market to rent property. Is less than three weeks, less than three weeks, but current rental yields are very close to 3.7% gross, they will be sitting at very close to 7% interest rate. Unit rents gone up by 2.4%
Parag Dixit
in
Julius
2024 and unit yields are very close to 4.3% so that's the current renting story. But rents are not growing that fast,
Mudit
yeah, which is not a great thing when you look at investors, yeah, from the point of view that the rate, interest rates are already going up and all that. Yes,
Parag Dixit
yeah, so and it's, it's, it does mean that if interest rates are going to go up and we look at the outlook for the year, but my rental yields are not growing. I'm actually de growing
Julius
here,
Parag Dixit
and that's that's a big concern when you are four years ago, three years ago, the story was different because your purchase power was different. You're trying buying properties at a different price, but now, when you are looking at it, the property prices have grown up by 80%
Mudit
Yeah,
Parag Dixit
but the rental yields have not grown. And so with a lower rental yield on a higher per price point, my negative gearing becomes too much,
Mudit
yes, and
Parag Dixit
that starts impacting
Mudit
the cash
Mudit
flow, yes,
Parag Dixit
but, but, and that's, that's more because of the rental demand which is happening there. Rental demand is there. So, you know, it's, don't take me wrong. So rental demand is there. You know, the local employment growth is definitely contributing. And we've spoken about it. Net migration is also there. We've spoken about it, but, but it's, it's kind of moderating from where it was, I think 2324 where it was peaking. There it was somewhere at the peak from there. And then the demand has started moderating a bit. It has, it has defense. I think it's a defense capital of the country now, but defense is there. Tech is coming up a little bit. Renewables, you spoke about Julius, that's coming up a bit. But it's not the demand. It's not creating it to the extent where you would want the demand to be there, right? And that's been an impact on
Mudit
that's
Mudit
been an impact. No, absolutely right. And so how it has been over the last few years. But like you rightly said, that property prices have reached a level where, where the and the rains have not gone up, are not going up proportionately, which is going to harm in harm investors in the way that you will start needing deeper pockets to be able to hold so I think that will, that is a story. I mean, which, which we which will continue, probably in 26 and what we will look forward. But, yeah,
Parag Dixit
but similarly, the affordability position in regional South Australia has been different. You know, like we said, people who were priced out in Adelaide came here and they they came here because they could find better yields than Adelaide. They could find that, okay, there is not only people who are coming there to invest, but when you are living there, people who are living there, the tenants who will eventually be in that house, or if you're an owner occupier and going to live there, the incomes are sustainable for them to be able to pay the rent. Hence, the yields were better. So versus what has happened in Adelaide, you will have a house yield of maybe around 444, and a half percentage is that, right? Units about five percentage plus and which is, which is, which is a good 2% plus in in terms of houses, or close to about 1% higher in terms of apartments, which is a good return, right? Which is, which is pretty strong and pretty good.
Julius
Yeah. So when you look towards the regional side of thing, property prices are still there are a lot of procedures where the prices are close to a little mid five but yields are still more than 4.5 to 4.8%
Parag Dixit
Yeah, that
Julius
is like your entry point is affordable. Plus, if suppose the interest rate is around 7% and if your gross is around five and a half percent, still, you have a little bit of negative, but because of the dollar value of this is sustainable. And then what we could see is basically there is a bit of rental growth as well.
Parag Dixit
Yeah, okay,
Julius
so with the interest rates are rising, the rental is also rising because of the fact that there is still the renting affordability. So in terms of the unit, it will be very close to five to five to five and a half percent as
Parag Dixit
well. All right, so that's, and that's, that's good so, but that means that, though, the income to the price ratio is more more beneficial in the South Australian market, but I think people who are more yield focus would be coming into these areas, and I think that's what's causing the demand to come here. But are there some specific regional areas, Julius, where, which all this demand is coming through, and this people are coming in those particular areas in Region South Australia.
Julius
Yeah. So if I look at, if I'll go with the SA three Council basis, I could see more demand which is coming towards the Murray, towards the gala and towards the Limestone Coast, where they around, they're like lot of suburbs which are crossing well above five to $600,000 margin where they were around in between early to mid threes and two years ago. Still, the rentals are rising. There are multiple reason like local employment in agriculture and mining and energy is good and it's sustainable growth as well.
Julius
as well as we can see a lifeline coastal demand,
Parag Dixit
yeah, yeah, you're correct. And that's that's coming to holiday people, and that comes to people who want to be there temporarily, or migrant workers, or people who are there for a short period of time. In fact, I think Viola has done well because it's got some government support coming through because of the steel production. And I think hopefully, everybody's hoping that, with the government support now, that steel bit should come back to track, and if it comes back to track, a lot of work will start happening there. And that's,
Mudit
I think you're right, overall, what has already also happened is that unlike, unlike, let's say, the WA and the Queensland, where there's a lot of resource rich regions, what has happened is there's been more spending by the government, by the defense and that is what kind of is helping the growth of the state, rather than being naturally the resource rich in that sense. So it's a little bit different from other states, how they have seen the growth, and how, how the outlook there is from an purely from an economic point of view,
Parag Dixit
correct, correct. And that's that also reflects there the inventories we've spoken about that it's always remained tight. It's always been lower than what it has been. It has, it doesn't have more construction coming in. But that's the that's the bit which, which the regional South Australia has as and we've spoken about it now a few times. Now, this is the constraint which it feels and which it has, which is there, but, but when these are the things which have continued to be in 2025 now, if I were to look at what's happening in the in the in terms of the economy of South Australia, the in terms of, if I start looking at what's, what's the future from here for the next six, 810, 12 months, we've got these roadblocks of the war and all that stuff coming in, but keeping that out thing aside, which is an exceptional event, we we've seen that South Australia is is pretty much okay when you look at the economic front and altogether, you know, throughout the year, You know, when the Treasury looks at what it is doing, it says that, okay, it is, it is at about three and a half percent, versus the the RBA band of two to 3% but it's still fine. They are expecting that by the mid of 2728 somewhere there, it will start coming back to two and a half percent, so that there'll be one state which will be within the band for what RBA wanted. Wants it to be there. It has its drivers, you know, it has its contributor, the same contributors, which I think all the others contribute on the same rents and property, property prices and energy price prices Julius was talking about, all of them have been contributing their services, a big services market, right,
Mudit
correct. But what has happened is, because the rent growth has not been that high. In fact, that is one of the factors why the this inflation has been a little bit more controlled there. Yeah. So unlike other states we've seen, the rent goes have been phenomenally high, the inflation has been higher. So that's one, one factor which is which has helped keeping the property prices still the rentals and inflation still in control.
Parag Dixit
Yeah. So I think the key risk that what you say, this brings the key risk across to this, because now we are looking at the third rate rise, which is going to happen in which is very likely to happen in May, and by the time people may be reading the hearing this, it would have already happened in May or something. But it's not reaching there. And because that, because of that, the interest rate environment with all which is going to be there, which is with an average, you know, variable rate coming around six and a half to 7% but if you start reaching for this, then we are looking at a pretty, pretty steep repayments for people. You know, when we are looking at with the RBA forecasting the inflation to go up. They're looking at about six and a half, 7% interest rate, which, if you start marrying with a four and a half percent or a 4% render deal, creates a huge gap, right? Especially
Mudit
when, especially when you're talking about, let's say if, if you're looking at Adelaide, and if you're talking about a million dollar house, then then a 3% gap for a million dollar house becomes pretty lot, yeah, so it is not for everyone, then it's not for everyone. So you need to be there where you can, you have the holding power, yeah, then this becomes relatively more attractive for you.
Parag Dixit
Yeah. I think if you compare both Adelaide and regional South Australia, I think Adelaide will be impacted a bit more, considering the most of the properties are touching a bit about million dollars or something, whereas regional South Australia is about half of that 500 days that has a good area and good option to have,
Mudit
because although the percentage remains the same, the difference, but the difference is that the dollar value terms the negative cash flow that you have To becomes
Parag Dixit
more affordable.
Mudit
It becomes more affordable. So you you're not letting 2000 $3,000 go every month from your pocket, and only $1,000
Julius
is still 5%
Mudit
yes. So which becomes more sustainable? Yes,
Parag Dixit
yeah. And again. So that's where the South Australia, regional, South Australia kind of has a better outcome versus this. Though the over totality the South Australian economy is expected to grow is go about 1.75% or something in the budget, which came through, but still it's not at par with the other big states of Queensland and the WA is and all that, still having good employment rate coming in their unemployment is pretty low, lower than what is the happening in Australia overall basis. But still, it is still not there. It's just got a small uptick coming in the labor market. Which is, which is happening in South Australia regions, South Australia, region, South Australia, I think the best benefit it will still get is from the orcas bit, which comes in 2026 is, I think, where it's supposed to have the workers starting to move in and starting to occupy whether it's renting or whether it's buying or something. But that's, that's the bit about, about South Australia, that on an overall basis, it depends a lot on whatever the government is going to do. It doesn't have too much of private sector contributing to that area. It has, it requires, it doesn't have resources like the others,
Mudit
and also, what is because of the war, especially, it has an agriculture sector, but the exports are directly going to get impacted by the war. How long it continues? So that's a that's something iron ore, again. So these are things that that the state is a little bit dependent on, but the especially because of the global climate right now, how will these sector fare in 2026 that remains a question mark. So these are some key risks as an as somebody who's looking to invest, you need to be you need to have
Parag Dixit
that. See, unlike WA, South Australia also doesn't have the population growth which is happening there. The population growth is, is about what? It's just about 1% 1%
Julius
below, below state average,
Parag Dixit
below, below
Mudit
the average.
Parag Dixit
And, yeah,
Julius
it's around 1.1% state average is around 1.6% like if you look at the latest TVs number,
Parag Dixit
yeah.
Julius
So population growth is okay. Net internal migration was great. It's been slowing down as well because of the affordable housing crisis. So migration outlook is moderate. It's not as great as what we are witnessing in WA or Queensland.
Parag Dixit
And other than that, when you look at the net internal migration. Why people are moving there? The affordability is minimizing. So basically, not lot of people are moving there because of the good. Because houses are getting expensive, everything is getting so expensive there. Yeah, correct, yeah. Though, you know, I'm still with talk of population, there will be a bit of a movement which will come because of orcas, which is, which is actually, which is a big event in South Australia, I suppose. And a lot of things are revolving around that you'll still have people coming in from there, but it's not going to be a massive bit. It will be at best, a moderate population growth, which is going to be there. It's just because there is an under supply in the market, which is which is still causing a bit of an imbalance, and which is still causing a bit of a thing happening, but a lot more has to happen in that area to be able to really get into this and and that's that's really having an overbearing on the whole socio economic environment and the context of the whole thing, which is there in South Australia, I think, another bit, which is, I think We're going to be a good contributor in terms of South Australia, would be the defense sector. A lot is happening in defense, in in Adelaide and in entire South Australia in itself, right? And,
Julius
yeah, more towards the orcas submarine program, plus Australian Space Agency, plus there is a nuclear powered submarine port infrastructure. So, so it's more towards the defense which is a long term employment generation, plus it's a kind of the lot of jobs which is going to be created in heavy engineering, and they are like a sustainable jobs in defense sector.
Parag Dixit
Correct, correct, correct. So again, I think, like we spoke when we were talking about Western Australia, we were talking of a two speed state, which it had started becoming similarly, I think, in in and around in Adelaide, where around the Osbourne, the whole corridor, and in and around that bit, there is going to be a good demand of renting, of buying, and of all of these things in particular, whereas We will also have, I think you touched upon that Barossa and all that valley, because of all that regional bit, there is still going to be a demand which is going to be created. But maybe other areas will have, maybe the mining which is not doing too much, and the other areas may still not be a bit slower, and we'll have some concentration risk coming in through that now, with all of these bits, we understood the social economy. We understood the whole economy bit there. We understood all of this. If I start looking at this, okay, I am an owner occupier, see, okay, I want to buy a property to live in there, okay, so if I want to buy a property to live in there, what do you. Think as an owner occupier, all of these bits, you know, the rental vacancies and the yields and the all this stuff is happening there, and there's a demand which is happening there. So what do you think will be? Should be my thoughts about how it's going to impact me.
Mudit
See, I think as an owner occupier, the first thought comes is, comes in that, okay, today I'm paying certain rent versus if I were to buy a house, what will be my mortgage repayment and how, how much difference is between the two? Can I afford it or not? So if you're looking at, let's say, average rental being in the range of 550, $600 a week, and if you take a mortgage of 400 if you have deeper pockets, if you have more sustainable deposit to give. And if you're taking a mortgage of 400k odds something, then it will be balancing, or it will be something similar. But if you're looking at one plus $1 million plus kind of property, then a half a million dollar deposit would be difficult for most western buyers. Then they'll be going closer to 800k 900k kind of kind of loan. Then the it will be quite different. It will be almost doubling compared to what the rental they are paying. So a lot depends on how much deposit you can carry, what range you paying, and the difference, especially given that the interest rates are a little bit on the higher side, on the higher side. So that is something, yes, there are first home buyer benefits by the state. There are, there is the first home owner grand especially for the new houses. Those benefits are there, but those are, I mean, small numbers compared to when you're talking about a million dollar kind of house. Yeah, I think, I think the price point is important. So if you're looking at a price point of about 500 ish, it is good. Yes, my the equation versus rent starts working in favor of my, of me. But if I'm starting look at a million dollar kind of price point, it starts to change. So it's just, even though Adelaide still is much more affordable than, I think heaps affordable than Sydney, Brisbane and and all that, but still it is, still there is a bit of a service, serviceability jump, you know, I need to have that's, that's my
Parag Dixit
big hurdle for me, the
Mudit
500k kind of because of the last five years of growth of 80%
Mudit
Yeah, that 500k
Mudit
mark is kind of fast, fast eroded away.
Parag Dixit
So it is going away. Yes, yeah, it is going away. But I think the Australian South Australia has some strong first home buyer schemes as well, which have been running there. I think that's the best part of that scheme. It is still got those time duty waivers for new builds, which are there. It has still got a strong grant which is available irrespective of the property prices. And also, there's some really good schemes, I think there wasn't this also about somebody who wants to downgrade and from their house and want to retire, and they want to do the system duty waivers there as well. So a lot of bit which is happening in this, some good, competitively priced properties available in the in the precinct, which we are talking, you know, that whole thing around Osborne naval, Naval Shipyard, yeah, all that bit. So there is still a lot things available there. So people still think that, okay, I've got an affordability window, which, as an owner occupier, which I have, which allows me that, okay, I can it makes sense for me to go in there, and it makes sense for me to be able to go and invest in those areas. So that will give me a bit of a benefit if I do that. So there is, it is varying, right? And we were talking maybe some prime earlier, there are proper suburbs which are next door, which are million plus. And then there's suburb next door, which is 506 $100,000 thing as well, correct?
Julius
So as an investors, if I look at Adelaide as a city, right, my house yields are very close to 3.5% versus the units are around 4.3% but when I look at regional NSW, sorry, regional South Australia, as an investors, my entry point is cheaper, like I'll be in early to mid five but my yields are very close to four and after 5%
Parag Dixit
Yeah,
Julius
versus if I'm looking at units, the my yields entry point will be in in between mid three to mid four bits, but My yields in between five to five and half percent,
Parag Dixit
yeah, yeah,
Julius
even though vacancies are extremely lower in delayed when you look at the Metro as well as the regional side, yeah. But the affordability wise, when you look at the buying and renting, affordability has a huge, huge difference,
Parag Dixit
Yeah, correct? No, that's true. So, and that's sometimes, as an investor, when I see that, okay, I've got a difference in comparison between the areas, between, say, Adelaide and regional area. So I I start looking at, where do I get a better cash flow? Where do I get a better return? Where do I think that? Okay, I will be more as an investor. It makes it gives me a lesser risk to go there. So I'm finding that sometimes, in totality, regional South Australia may win over an Adelaide thing. But what? What do you think if I would look at this, if I would look at this lens as a investor, will these conditions enable me in the year 2026 to still consider Adelaide or. Regional South Australia, to invest there, to go there and put my money in there. And I think I will be able to get a benefit out
Julius
of that, in terms of when you purely go towards the cash flow. So then you need to find affordable opportunity where opportunity where you can at least make around four and a half to 5% yield in Metroid lit, probably if you get into the dual income properties, or if you able to find something where it's if you secure a good deal, where you can achieve around four to four and half percent LTDs, or it will be very difficult to hold those properties, even though the vacancies are lower and there is extremely high demand from owner occupiers. So unless you can, you have deep pocketed you can't hold the property for longer time, then it's difficult, yeah. But those who, those who have a holding capacity to hold the property sign between three and up to 4% yield by sustaining with 7% interest rate, then it's a good market, because it will still have a good capital growth.
Parag Dixit
Yeah, yeah. So I think you know, one important thing, which we all have been talking about, is aukus, and aukus is now starting in 2026 it's not a past event. It's a future event, and it's going to provide an impetus for the next two to three to five to 10 years. It's a multi year event starting now. So unlike other states, which are like, they've had their events, and they are now kind of reaching peak of those events, or maybe receding in those events. South Australia has the benefit that it's starting now. So my as a landlord, I still command purchasing power, and I still command rental power, and still I'm saying, Okay, I have an event coming in front of me, I have an option coming in front of me, and I think that I'll make more rental value, rental yields becoming that points of time. You
Mudit
know, you're you're right. So if I look from a demand, supply angle on on what we're saying. So projects like these, they are promising that there will be demand, yeah, for the for for migration and for people to coming in. And that's why there will be demand. This seems to be that there will be stronger demand going forward as well, from a rental point of view. Now, what is the constraint? The constraint is that on the on the rental increase side, the rentals have not been going up so high, but because of more demand coming in, if the supply is not able to match that, the rentals can increase a bit faster. The other factor to keep in mind is the interest rates, which is on the higher side. So, yeah, that's where Julius, like you, said that the deeper pockets will become important. So overall, that's that's the view to keep in mind when you'll start looking as an investor,
Julius
on top, when we look at the focus and defense related job, if, if the income is higher, then within those workers, those required homes to live, rental homes to live, the renting affordability will increase, and that will create the additional pressure on a renting affordability side as well, which will be okay if you don't have a properties to live, vacancies are tight, and then if they can afford to rent, then you might see a little bit of rental increase as well.
Parag Dixit
Yeah, absolutely right. So, and that is how a big event like this create, and that's how I think, I think this event will create pockets in Adelaide and pockets in regional South Australia, where some pockets, like all around, where the orcas bit is coming in, will be strong and will have good benefits and good growth, where the other pockets may kind of be stable.
Mudit
I'm so I'm in the terms of scale, because I mean an event, how it impacts, like we have seen the Olympics Brisbane, right? That event has, has been, has just changed the way the city's housing is looked at, and it has increased so much, right? So that one event, and that's a that's an event everybody knows. So in terms of scale, I'm not too sure whether, when we compare in Olympics and August, where do they sit in terms of scale of the event? But yes, we have seen that, what an event like that can do to a city.
Parag Dixit
See, I think, you know, I if I would look at it personally. Okay, Olympics is a few days event that there's a lot of infra. Important thing is the infrastructure, which is getting built. Is getting built around it. So when infrastructure is getting built around it, people come, people want to stay, people get employment. People are able to do businesses. And then that event happens, and it goes away. Right? What aukus is doing in Adelaide is it is doing something similar. So there is a Naval Shipyard being built, and then there will be nuclear submarines being it should be built. And there's a force, something's been built, and that shipyard will also do other defense stuff. And there's a lot of more defense people coming in, so there are construction worker coming in, there's defense people coming in, but they're not going away. They're staying there for long. They're staying there for permanent and they're staying there for a for for multi, maybe decades, right? So that's, that's that's going to be a much, much longer term impact which, which, which is, and which is going to play out now, and which is going to do a lot more in the Adelaide market and lot more in the South Australian market. So when you, when I look at all of these bits and, and, and we never know, right? So it's a bit of a, it's a bit of a. Hope or a bit of a positive situation. But again, there's a bit of a migration coming in in Adelaide. Now it's reversed right earlier, maybe five years ago, seven years ago, there was migration going out of Adelaide. There's nothing else happening here. Now it's coming back. So when it's coming back, that's also helping. The other employments are also helping. So it's not only one isolated event. So maybe it's not so bad. It's pretty positive out there as well. And who knows, God knows that maybe orcas can really, really turn another level and take it up from there, right?
Julius
It's like same thing happened in Perth in Rockingham when we got the Garden Island,
Parag Dixit
yeah,
Julius
correct, the spending was around $10 billion and then it has created so many jobs, and it has changed the entire outlook of Rockingham economy
Parag Dixit
100% and this is 90 billion. That was 10. This is 99 times, right? So it's huge, much, much bigger than what's going to happen there. But again, so if i So, if I look, if you look at this like, okay, Julius, so maybe this questions to you for a purchases if I'm wanting to now see 2026 and I'm and I want to make a strategy. If I want to make a strategy around purchase outlook for an Adelaide area, how should I see 2026 from happening? And does it make sense for me as an owner occupier or as an investor to come in and start looking at Adelaide positively again?
Julius
Okay, Adelaide is bit strategic now, so demand and supply always had a gap. So currently there is, if you look at the inventory towards the especially towards the south side of the ad Lite is expensive, more premium. But northern side you have still have lot of opportunities, three councils to focus on, probably towards the Salisbury, titri Valley and Playford Council, where demand and supply has lot of gap. You could actually when, if you can afford to keep your property at 4% yield, then any investors can actually buy a good property with the good land size, because the zoning has been changing over there.
Parag Dixit
Yeah, yes.
Julius
So there are lots of opportunity for the subdivision. So if you have a strategy of subdivision, if you have strategy of putting a granny flat at the back and then adding your income to your property, or if you can hold the properties before doing subdivision on lower interlude, then and then, capital growth is only aspect then, yes, at this stage, at least is very, very strong.
Parag Dixit
Ad Lite is very strong, and it follows strong days on market, auction, clear, everything, all that good is so good there. So, and we don't expect that there's going to be any kind of a inventory relief coming in 26 no nothing, and no construction pipeline. Not much is there, right? It is. It's still sellers market. Kind of a market 26 will not be, I don't think so. Will be a dam, which will be pretty strong, right? Yeah,
Mudit
it will be strong. It's just, I think it's a cash flow game. More of a, like you're saying it's a, it's a cash flow game, if you can sustain because, yeah, initially the gross yields might be lower, and it might take a bit of time for the rentals to go up to a level where you are start seeing the balance and the interest rates also will start probably coming down sometime. Not, not this year, not expected, maybe the year after 2027 so 2026 is going to be more of a game of cash flow if, if you good there, if you're comfortable there, then this can promise good returns to you. Yeah,
Julius
owner occupier is adding more pressure in the market because there is a lot of owner occupied demand. See if you are an investors, and then if you are able to hold property because of extremely high owner occupied demand, there is a good growth on the properties. So
Parag Dixit
you, what do you think? What do you think? Can you maybe, if you want to hazard guess, you know, what would be the upside in the year 2026 obviously, we are assuming that you will have quality selection of properties. You just want to buy anything and everything, and you'll still have but do you what do you think can be a good maybe, I think hope for in this year,
Julius
in this year, for any good investor, it's a strategic purchase, where, if you're able to buy a property in that selected Council, yeah, with the good land size, and then at least general neighborhood properties or master plan neighborhood, it's a game changer.
Parag Dixit
It's a game changer. So I can expect, say, 578, percent, more than maybe 10% kind of a return more than that. All right, okay, but on an average, maybe I can expect five to 7% kind of thing in the Adelaide market, right? And that's really strong if, considering what's happening in the year around us, it's not a bad thing to expect out of if, in a if I am still getting at least my interest rate worth of money in terms of capital growth come there. So I'm more neutral in that, plus my rental yields overall, my capital growth yield, plus my rental yield, which I have got, if I'm, if I'm getting about 10, 12% 13% I'm, it's a good it's a good thing. It's, I'm not doing bad in that. And it's a it's a good market. So, but coming back regional, South Australia, you know, under the radar market, it's a, it's a quiet story. It's a, it's a silent killer, maybe. Or does it look like 2026 What do you think does it look like mudit, that it will be a good, strong thing, which is deliver both units and houses, they will both deliver. Or do you think there's going to be a difference? Right?
Mudit
The growth has been has been more promising. The affordability has been better. The prices. Price point is much more affordable. So I think the good thing about regional market is that when you look at investor market, more there are very less in terms of percentage of investors, very less percentage who are looking at properties, let's say 700k 800k or a million dollars or above, the most investment investors are looking for lower, relatively lower value property, more affordable properties, something in the range of 300k 400k 500k 600k That's the market, right? And that's where regional South Australia scores. The affordability is there. The rentals are rental yield is fine, and this the stock and supply and the construction constraints still exist from purely from a demand supply perspective. The demand is containing, like the projects, the government infrastructure, the defense projects coming, the tourism, all of that is still going to continue to provide demand. The supply is limited and it's more affordable, that that holds relatively better promise in that sense.
Mudit
Yeah,
Julius
yeah. So in regional side, basically at this stage, lot of investors are either looking for our properties in affordable segment or higher segment where you have more income, and we could see a more amount of pressure is coming towards the affordable segment. Regional South Australia has more than 30 satos, where you still have this capacity to grow up like the property price is high in only 500 your income is very close to five and a half percent plus. There is enough gap between demand and supply. And from last two years, the pressure on the property is extremely high. And in this scenario, when, if you're looking for a properties which are affordable, which where you can have a good rental yields, plus they are in a moderate segment, then that's place to
Parag Dixit
in fact, I think one one bit which we've been talking throughout this podcast, and we've been discussing this, one of the important bits, I think, one of the very, very niche markets, or one of the very unique markets in regional South Australia has been the apartments market. They, unlike any other market, have a higher capital growth. They have more capital growth and a higher rental yield for any capital to happen, for any area to happen. And this is a pretty unique combination. So you have a good price point of an apartment or unit there. You have a great capital growth coming in there, and you have a phenomenal rental yield coming in there. It's a phenomenal three triangular benefit, which comes to people. So that's why units are still very much in demand. They're not so well spread across the regional South Australia. But if you're looking at a mount camber, or if you're looking at in these, these areas, if you're looking at Vala, if you're looking at some bits where you can find them, they are doing extremely well. And that's and it on, and that's what on an overall basis, not only an apartment, only the highest houses, the the it's critical, but kind of inventory situation there, but it's still good, and it is still going to remain low in terms of inventory, and it's still you're looking at properties, and this bit is going to be a much better growth coming out there. So again, I've put you on the spot, Julie, what do you think will be a capital gain target, which I can expect in regional essay, houses, apartments? What do you think
Julius
for good properties, more than 12 to 15% probably in moderate around nine to 10% unit can grow up to eight to 11%
Parag Dixit
Wow. So that's so that's not bad, right? So you're looking at both houses and apartments doing something similar, and that's a strong growth. When we're talking of double digit growth in properties there, it looks pretty strong. And many. If this is the outlook, which we are looking at, it's a it will be a good, good bit which I would love to have. You know, I Why? Why would I not love to invest there, if I'm getting a six, seven?
Julius
That is when you look at generic investments, and if you have some strategic investment, if you've that's
Parag Dixit
a different thing altogether.
Julius
Yeah, if you look for, if you have good connection with the real estate agent, if you find good property, probably more than that, probably
Parag Dixit
more than probably more than that. Yeah, and how do you think is the rental outlook looking for Adelaide mudit? What do you think is going to be happening in 2026
Mudit
rental Outlook? So the vacancies rates are low, the clearance is pretty high. But as of now, it seems like because of the kind of demand, the way it is growing, the rentals will grow, but not, not at a very, very fast pace. It a lot will depend on how much, how much of migration comes in, how much of the projects, what speed do the projects go by? Because there's a plan for the project, the big projects which are coming there, but what speed do they take up? What kind of demand comes in, which will put pressure on rental otherwise, the rental growth will be kind of moderate there
Parag Dixit
in Adelaide and and you think that all the other aspects which you've seen through, all the other factors which you've seen through, you know, occurs and employment and defense and migration and all they will still, they'll still have a moderate impact on what's what's going to happen in the rental
Mudit
so the. These are the factors which are contributing to adelaide's growth story for now, right? Otherwise, like we said, that Adelaide has been seeing net negative migration in the last few years. It's just that, because of some of this spending which is going to come, there's a more positive momentum. But what stage and how far these projects get executed is going to that will be an important factor to see that what pressure and how fast the things start moving there?
Julius
Yeah, Adelaide has
Parag Dixit
also seen, actually, as a bit of a student input coming in that net called migration. But student coming in, international students have come in in the universities there and then. Is that also going to contribute a bit to the rental demand in the Adelaide
Julius
rental demand is extremely high. That's how we see. The turnaround is pretty good for me. The renting affordability is little bit lower. That's why the rentals are not growing. But as we say, because of workers or the big projects, when the big income earners will land into the state, that's time when I would we could say around three to 5% rental prices.
Julius
So at this stage, this year, we're expecting around at least three to 4% rental price, not more than that.
Parag Dixit
Yeah, but again, so we're not talking of a bad year. We're just talking of a moderate and a marginalized year. It's not a it's not a bad thing, it's not a crash, it's not something. It's just that it's balancing it out, and maybe sometimes when its balance is out, it's poised to have another jump in the growth there. Who knows? And there's a lot of positive headwinds, which are positive winds, which are tailwinds, which are coming into South Australia. And how does it look at West that's rest of South Australia, the regional South Australia.
Julius
Regional South Australia. Last year was better. And 1025, we have seen around 14.3% capital growth, and the yields were very close to 5.1% when you look at the outlook for this year in terms of the rental because of the extremely high pressure, plus the I could see the renting affordability is still around 27% of the income. All
Parag Dixit
right, okay, so that's pretty good.
Julius
That's pretty good. So that's why we could see the rental rises I expected to in between six to 7%
Parag Dixit
Yeah, yeah. So, and it's a good growth, which we are talking of the good demand, which is already there. Vacancy rates are always already lower. So it overall, it means that 2026, is Can, can have a good return for people. So if you're looking at a rental yield return plus capital growth is coming, there, you're already talking of maybe 15, 20% of what you can get, which is not bad, which is a pretty strong thing. And I think regional essay can is, is should be on my it should be on my list, if I would love, if I would want to invest into something, and if I'm looking to invest, if I'm looking to buy, and if I can stay there as an owner occupier, pretty, pretty attractive,
Mudit
right?
Mudit
Definitely it is. It is something that is not to be, kind of not there. It has to be. It must be considered. It should be there in the consideration set if you're looking as an investor. Of course, other factors are about how your portfolio is, where, what your risk applies, and all of that, but it is definitely there in the consideration set. Yeah.
Parag Dixit
And I think a lot of stuff, when government has been doing a lot of stuff in South Australia across to to help people buy, to help keep the housing market chugging along right.
Julius
Lot of schemes, like first on buying scheme, downsizer schemes, these are all the schemes which have been announced by government to help them to get into a property and which is creating additional demand as
Parag Dixit
well. Awesome. So this is, this is this is awesome, guys, I think, I think we've had a phenomenal discussion. So if I would love to make a quick summary, we think that in in terms of purchase 2026 is going to be a good seven to 10% kind of depending on the property purchase pricing in Adelaide, maybe 10 to 15% in regional South Australia. Adelaide is going to be good. So even, even though rental demand is coming through and a lot of new bit is going to come through, that's going to be strong as well, right? We're looking at a four or 5% rental increase, which is there, and maybe the pockets of orcas can even have a much better increase which is going to come there, which is not which is not bad. I know the affordability has come down Adelaide. The price has gone up so much. Then 25 and 26 is still looking to grow. The vacancy rates are pretty low. It is still one of the pretty, pretty low, right now it's a balancing market, but still, growth is there, right? Which is going to come through in Adelaide market? Correct? Yeah,
Mudit
correct. So more balanced you need to look at, purely as an investor, you need to look at the price point at which you buying and how much, how much negative cash flow can you manage in terms of the rental yields, like you said, so it's more about cash flow management is a big part of the strategy. It has to be a big part of the strategy. If you're looking at Adelaide that how long can you hold and see the higher interest rate phase to get over and then you see that growth?
Julius
Yeah, that's right. So Adelaide at this stage, demand and supply, is lot of gap, all the parameters which will give you. Your growth in terms of difference between demand and supply is still aligned when we look at the fundamental side of it. Affordability is little bit going towards the negative side. But it's not too bad rentals are okay at this stage. Kind of strategic investment where if I can hold for longer time, and if I have some if I would like to manufacture the growth from my land itself, from the subdivision, or some other kind of project, then that's the that's the time when I look at the Metro idlit. But they're still the pockets within the Adelaide are still sitting at very close to four to four and a half percent in affordable segment towards the Playford council. So if you're able to secure a good asset, then it's a great pocket to invest. It's
Parag Dixit
a great pocket to invest in. Okay, let's, let's quickly summarize regional South Australia as well. So as you said, Julius, maybe we're expecting 10 to 15% of worst case kind of an eight, 9% yields which are going to come through in the houses. We looking at good in terms purchase, in terms of growth, which you're looking at, we're looking at a good purchase capital gain expectation of eight to 10, 15% in apartments in the regional South Australia market, strong, right? Pretty strong markets. Long, structural things which are happening there, very good combination of capital growth and rental growth and rental yields which are coming out there. Rent leads looking at good five, 6% plus here. Rents are growing pretty nice. But So overall, I think regional South Australia is also a bit stronger. Adelaide is a bit picky, and you need to pick quality stuff. It's not bad, but it's you need to pick quality stuff. Regional South Australia is more freer. You know, you can pick a lot more
Mudit
more freer. And I think the biggest point which goes in favor of there is the affordability. It is much more affordable. So you can enter at a affordable price point. Yeah, the rental yields are better and the demand is there for it to continue to grow. It may not be kind of 80% growth in five years that we have seen. It may not go like that, but still it is. It is not bad that ways. Yeah, it's
Parag Dixit
not bad that way is correct,
Julius
yeah, if I look at the more affordable segment, where, if I want it to be in between 500 400 to $600,000 400 to $600,000 margin for fundamentally, the markets are good and has a good growth, true for next few years. Plus, structurally, the markets are pretty good, good quality houses and good rental yields, which will give you the more sustainability, plus the tenant quality is better, then I should look at regional South Australia,
Parag Dixit
South Australia as well. All right, no, that's a, that's a good take, right? So I think the parting lines for me should be that if I, if I would want to invest, I think Adelaide and regional South Australia are good contenders for me to choose. So again, obviously, obviously, I'm looking at a portfolio and what, what comes to it. How do I what properties do I have? What I haven't plans? What do I want to see? What do I want to achieve? All of those can be very important to to to decide what do I want to do. But regional South Australia and Adelaide still a bit a lot in consideration set in this year. Correct?
Julius
Yeah, that's right. So both has a different aspect, but you can choose either one. You
Mudit
can choose
Parag Dixit
either one, and you can you, if you, if you're doing good, you will do good, and you'll make some good money. Before
Mudit
we do
Mudit
that, Julius, we have to make a trip to Adelaide, South Australia, and not him.
Parag Dixit
I can be a good tourist guide. I can take you around. I can show the nice places. Guys, you can depend on me, but because
Mudit
of his stories, now I'm so tempted to
Parag Dixit
go one day. All right. Guys, thank you so much. Great discussion, guys, thank you for joining in. Thanks
Julius
a lot. Bye.